A global crisis is looming on the horizon. The pandemic caused by the COVID19 is far from being over. Yet, we already see signs of recession in some countries. Among the most damaged nations, there are Italy, Spain, and others. Governments have deviated resources to get the virus under control; they risk going over budget. The economy is at stake.
What does this situation mean for the layman? On one side, many people could lose their jobs. The small-to-mid-sized businesses may not reopen. And, although large companies will make do, cutbacks will come. On the other side, a period of abusive contracts is to come. When markets are down, workers lose their rights. But there is hope.
Are You Having Financial Hardships?
Detecting the signs of economic unbalance is key to finding a solution. These are some usual situations associated with financial trouble:
- High balances beyond your credit limit,
- Overuse of credit cards/lines,
- High debt-to-income ratio,
- Paying bills cause regular stress,
- Doing magics to pay monthly bills.
Sometimes our financial prospects do not work as expected. However, long-term payments keep pressure every month. Fortunately, you can rely on Expert Payday Loans to get short-term quick loans to make do better.
How Can You Avoid Financial Difficulties?
Crisis makes it more difficult to find workarounds. In the end, you can only solve debts with money. Thus, you need to bank enough cash to pay off those bills. These are some tips to make this process easier:
- Reduce your overall expenses,
- Kill any expendable expenditure,
- Save more money every month.
You may need to tighten the belt for some months. But, is it not worth to reach financial freedom? Once you leave those recurring bills behind, you will own your money.
Financial Freedom 101: Passive Income
Wouldn’t it be amazing to make money while sleeping? In fact, this is possible thanks to passive income streams. Some of these options need low-to-zero investment.
- Marketing an e-book/digital product/referral service using ads,
- Selling an online course – popular during the lockdown,
- Trading on cryptocurrencies, like Bitcoin, now at an affordable price.
The magic behind passive income is that you can escalate. On the contrary, you cannot work more hours per week above a certain limit. You need to rest! However, money does not rest. Markets move, and worldwide internet users buy/sell 24/7.
Compound Interest Formula
Do you prefer 1% of 100$ over 100% of 1? When you save enough money, you can think of investing in assets. The compound interest formula explains how the value of something can grow with time.
- By saving $100 yearly at 5% compound interest for 5 years, you end up with around $650.
- Profit: $650 – $500 = $150.
Does it sound like too few? Think of it again; you didn’t have to work for it. That’s the true power of the compound interest! Now, there are several assets whose value increases with time with similar rates, such as stocks (now cheap), bonds, crypto (more volatile), etc.
In conclusion, by taking action, you become a doer. Find your strategy to solve financial hardships. In the mid-to-long term, you will reach financial stability and peace of mind. Also, using the services by Expert Payday Loans can be handy in key moments. Start working on your future today!